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TITAN Q4 Results Beat Consensus on All Fronts; Hero Motocorp and Graphite India to Report Today

June 09 2020
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At 8:00 am IST, the SGX Nifty Futures was trading at 10,223, compared with Nifty’s close of 10,168 yesterday.TITAN Q4 Results Beat Consensus on All Fronts.

Market status: Confirmed Uptrend

Global stock markets:

Dow 30, +1.7%; S&P 500, +1.2%; Nasdaq, +1.1%; KOSPI, -0.1%; Nikkei, -0.6%; Hang Seng, +1.4%; Shanghai Composite, +0.2%.

Yesterday, after opening about 200 points higher, Nifty moved sideways in the first half of the trading session. However, it quickly succumbed to selling pressure and pared most of its gains to end just 25bps higher. During the day, it tested its 100-DMA (10,304) and failed to close above it. On the sectoral front, it was a mixed reaction. Nifty IT (+1.8%) and Nifty Pvt Bank (+1.3%) were the major advancers. On the flip side, Nifty Media (-1.7%) and Pharma (-1.4%) were the major decliners.

Historically, 100-DMA has been a crucial level to watch for Nifty. The confidence in the current rally will build up if Nifty is able to retake its 100-DMA. In addition, Nifty’s 50-DMA started to turn upward and the broader market participation in the rally is a good sign. We remain in a Confirmed Uptrend and are open to increasing risk selectively in quality names coming out of proper bases.

At the beginning of the move in the general market, there are usually a few stocks that have already completed bases and are breaking out. Often, these early leaders will cluster into groups that may represent where the most institutional appetite exists. Ideally, this is where we try to "buy right." There are a few things that work to our favor when we do this. One is that these primary leaders usually have bigger upside moves and will lead throughout a cycle. A second is that the cushion we gain as the trend progresses allows us to truly capitalize on the move. O'Neil has said that if you can get through the first correction you are in the driver's seat. That cushion from "buying right" allows for a clear head when determining if normal volatility is a threat to your position or not.

Key News

Hero MotocorpGraphite India (Nse), and Bombay Dyeing & Mnfg. will report their Q4 results today.

TITAN Industries (Nse) reported Q4 FY20 results. It beat consensus on all fronts. Revenue was down 5.2% y/y to Rs 4,428 crore. Net profit was up 21.1% y/y to Rs 356.8 crore. Margin expanded 390bps to 13.6%.

Pvr reported Q4 FY20 results. The company registered a loss of Rs 74.6 crore. Revenue was down 23% y/y to Rs 645.1 crore. Margin expanded 760bps to 26.8%.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 88%; Rally Attempt, 0%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 92%; Rally Attempt, 0%; Uptrend Under Pressure, 8%; Downtrend, 0%.

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Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

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